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2021 Supreme(Guj) 682

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
J.B. Pardiwala, Vaibhavi D. Nanavati, JJ.
Maheshbhai Jivrajbhai Gujarati – Appellant
Versus
Krishna Pravinbhai Gujarati – Respondent
R/First Appeal No. 1951 of 2021 with Civil Application (For Stay) No. 1 of 2021
Decided On : 01-09-2021

Advocates:
Advocate Appeared:
For the Appellant :Mr Pathik M Acharya, Advocate
For the Respondent:Mr R.S.Sanjanwala, Sr. Advocate With Mr Tarak Damani, Advocate

Point of Law : Court is not bound to grant specific performance on the decree because there is a valid agreement for sale. The discretion is with the court. The court can exercise such discretion equitably depending upon the facts and circumstances of each case.

Headnote:

Civil Procedure Code, 1908 - Section 96 - Contract Act – Section 32 and 56 - Land – Property - Agreement for sale - Appellant herein shall be referred to as plaintiff–vendee and respondent herein shall be referred to as defendant–vendor - Plaintiff-vendee and defendant-vendor entered into a registered deed of agreement for sale with respect to Final -This Deed of Agreement for Sale without Possession is executed in favor of Purchaser of said Land – One, Occupation Agriculture and Business, Hindu by Religion - Old tenure agricultural land and upon it being amalgamated into T.P. Scheme same has culminated in Final Plot and Town Planning Committee vide its Resolution had approved same and thereafter said Resolution was placed before the In-Charge Municipal Secretary, Town Planning, Surat Municipal Corporation, who by Resolution suggested to allocate land - Whether the trial court is right in saying that the suit contract is invalid or void.

Finding of the Court :

Dubious conduct or circumstance lends credence to case put up by defendant-vendor that there was no actual or real intention to sell suit property to plaintiff-vendee - It is only on account of disputes arising from the business between parties and with a view to settle dispute through mediation, by way of a security agreement for sale was executed, otherwise it was understood between parties that such agreement was never to be enforced - This is evident from record of this case, more particularly, oral evidence - There is one circumstance in form of admission on part of plaintiff-vendee which court must take note of it - Plaintiff-vendee, in his cross-examination, has admitted that on the date of execution of agreement for sale he had knowledge that defendant-vendor is not sole owner of property in question and brother of defendant-vendor has a share in suit property - If such a fact was within knowledge of plaintiff-vendee, then he owes an explanation as to how come he entered into an agreement for sale with respect to suit property only with the defendant-vendor.

Result: Appeal dismissed

JUDGMENT :

J.B. PARDIWALA, J.

1. This First Appeal under Section 96 of the Code of Civil Procedure, 1908 (for short, ‘the CPC’) is at the instance of an unsuccessful plaintiff of a civil suit and is directed against the judgment and decree passed by the 2nd Additional Senior Civil Judge, Surat, dated 19th June 2021, in the Special Civil Suit No.208 of 2017, by which the suit filed by the plaintiff for specific performance, declaration and injunction came to be dismissed.

2. The facts giving rise to this Appeal may be summarised as under :

3. For the sake of convenience, the appellant herein shall be referred to as the plaintiff–vendee and the respondent herein shall be referred to as the defendant–vendor.

4. The plaintiff-vendee and the defendant-vendor entered into a registered deed of agreement for sale dated 7th October 2016 with respect to the Final Plot No.90/2 of the Town Planning Scheme No.7 (Vesu-Magdalla).

5. The true English translation of the deed of agreement for sale reads as under :

    “This Deed of Agreement for Sale (Sata Khat) without Possession is executed in favor of the Purchaser of the said Land i.e. Party of the First Part:

Maheshbhai Jivrajbhai Gujarati,

Aged 47, Occupation Agriculture and Business, Hindu by Religion, Residing at: 902, Dream House, Near L.P. Savani School, Canal Road, Vesu, Surat

PAN No. ADOPG 3271 G

(Which shall hereinafter be referred to as Purchaser or the Party of the First Part in the present Deed of Agreement for Sale without Possession, which expression shall, unless repugnant to the context or meaning thereof, be deemed include the Party of the First Part Company and all the present and from time to time Directors, Assignees, Executors, Administrators, etc. of the Company)

This Deed of Agreement for Sale (Sata Khat) without Possession is executed by the Vendor of the Land i.e. Party of the Second Part :

Krishna Pravinbhai Gujarati,

Aged 28, Occupation Agriculture and Business, Hindu by Religion, Residing at: 29, Tapinagar Society, Beside Kubernagar-2, Ved Road, Surat

PAN No. AJVPG 5987 G

(Which shall hereinafter be referred to as Vendor or the Party of the Second Part in the present Deed of Agreement for Sale without Possession, which expression shall, unless repugnant to the context or meaning thereof, be deemed include the Party of the Second Part himself and his Heirs, Guardians, Successors, Assignees, Executors, Administrators, etc.)

WHEREAS, the Party of the Second Part, by executing the present Deed of Agreement for Sale without Possession in favour of the Party of the First Part, states as follows:

The old tenure agricultural land, which admeasures about Hectare 0-11 Are 00 Sq. Meters, bearing Old Survey No.41/1 paiki, New Revenue Survey No.30-2-1, is situated at Mouje Village Magdalla, District Surat, Sub-District Surat City (Presently Majura Taluka) and upon it being amalgamated into the T.P. Scheme No.7 (Vesu-Magdalla) the same has culminated in the Final Plot No.90/2 admeasuring 781 Sq. Meters and the Town Planning Committee vide its Resolution no. 4/2015 dated 09.02.2015 had approved the same and thereafter the said Resolution was placed before the In-Charge Municipal Secretary, Town Planning, Surat Municipal Corporation, who by Resolution No.: 25/2015, dated 07.09.2015, suggested to allocate the land and as per 7/12, the Party of the Second Part is in the ownership, occupation and possession out of the land admeasuring 1026.67 Sq. Meters (733.34 Sq. Meters + 293.33 Sq. Meters) and the Party of the Second Part out of the land admeasuring 728 Sq. Meters, the land admeasuring 618.729 Sq. Meters i.e. 740 Sq. Yards together with the right, title, share and interest of the Party of the Second Part as per Final Plot and together with all the inside and outside rights appurtenant thereto and from the center of the earth to the infinite in the sky, has been described in detail in the Schedu

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